Sep 30, 2021

ALC Q3 2021 Earnings Report

Reported a good quarter with record high rental revenues, total assets, and lease placements, as well as the lowest composite funding rate in the company's history.

Key Takeaways

Air Lease Corporation announced its Q3 2021 results, showing an increase in revenues driven by fleet growth and cash collections. The company placed a record number of aircraft with lessees and saw a rise in quarterly rental revenue. The Board of Directors also authorized an increase in the quarterly common stock dividend.

Placed a record number of 64 aircraft with lessees, the highest in ALC history.

Recorded $520 million of rental revenue during the third quarter, the highest quarterly rental revenue since ALC’s inception.

Took delivery of 16 aircraft from our orderbook, representing $808 million in aircraft investments.

Increased quarterly cash dividend by approximately 15.6%, from $0.16 per share to $0.185 per share.

Total Revenue
$525M
Previous year: $494M
+6.3%
EPS
$1.28
Previous year: $1.47
-12.9%
NBV of Flight Equipment
$22.1B
Previous year: $19.5B
+13.3%
WA Fleet Age
4.4
Previous year: 4
+10.0%
WA Remaining Lease Term
7
Previous year: 6.9
+1.4%
Gross Profit
$185M
Previous year: $191M
-3.2%
Cash and Equivalents
$1.87B
Previous year: $1.24B
+51.3%
Free Cash Flow
$251M
Previous year: $194M
+28.9%
Total Assets
$27B
Previous year: $23.6B
+14.4%

ALC

ALC

ALC Revenue by Segment

Forward Guidance

The company anticipates continued growth and recovery in the airline industry, with international volume poised for strong recovery as travel restrictions are relaxed.

Positive Outlook

  • Growing demand for new aircraft, especially single aisle aircraft.
  • Optimism in the future of the business and global airline travel.
  • Industry relying on ALC and the leasing sector to achieve fleet modernization objectives.
  • Trend persisting for the foreseeable future.
  • Global air traffic continues to improve.

Challenges Ahead

  • Long road remaining ahead for the recovery of airline financial performance.
  • Ongoing manufacturer delays.
  • Impact of COVID-19 may continue to affect the business.
  • Aircraft delivery schedule could continue to be subject to material changes.
  • Delivery delays could potentially extend well into 2022 and beyond.